credit associations by local NGOs that assist in the management of the fund in return for a management fee. The approach was developed in the early 1990s as a result of the withdrawal of donor support to
traditional women's group activities and the local NGOs are now entirely self-supporting. The outreach of the services is comparable to the main donorfunded initiatives and evidence suggests that depth
of outreach to poorer people may in fact be better. This paper describes the model and explains its apparently successful performance. However, the analysis also suggests that the model has inherent weaknesses,
especially in default management, that need to be addressed if its success is to continue.